📈 Compound Interest Calculator

Calculate compound interest for investments and savings accounts

The Compound Interest Calculator below can be used to compare or convert the interest rates of different compounding periods. Please use our Interest Calculator to do actual calculations on compound interest.

Modify the values and click the calculate button to use

Input Interest

Output Interest

Conversion Details

Converting from 6% Monthly (APR) to Annually (APY)

Effective Annual Rate: 6.16778%

How to Use the Compound Interest Calculator

Compound interest is the interest on savings calculated on both the initial principal and the accumulated interest from previous periods. It's the reason why starting to save early can lead to massive gains over time.

Key Concepts

Initial Investment: The starting balance of your account.

Contributions: The amount you add to your savings regularly (e.g., monthly).

Interest Rate: The expected annual return on your investment.

Compounding Frequency: How often the interest is calculated and added to the balance (e.g., annually, monthly, daily).

The Compound Interest Formula

The standard formula for compound interest is:

A = P (1 + r/n)^(nt)

Where A is the future value, P is the principal, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the time in years.